Business insurance is a great way to protect yourself and your employees, but is it required by law? Yes, but what’s needed depends on the nature of your business.
When Business Insurance is Required
If your business falls under specific categories, you must have insurance. For instance, if you have employees and may be obligated to pay unemployment taxes, you must have unemployment insurance. And, with employees, you’re also likely legally obligated to carry workers’ compensation insurance. Workers’ compensation laws vary by state.
Some states require “specified professionals” to carry insurance against professional liability. Many business owners fall under this category — to see if it applies to you, it’s best to check your local state’s policies.
Disability insurance is required in California, Hawaii, New Jersey, New York, Puerto Rico, and Rhode Island. Partial wage replacement insurance is sometimes required for eligible employees for non-work-related injury or illness.
What Does it Cover?
There are many types of business insurance, each with its own coverage. Your business insurance can include any of these benefits:
- Commercial vehicle insurance provides coverage for commercial vehicles and drivers
- Cybercrime insurance will cover online risks
- General liability insurance covers injuries to other people related to your business
- Key person insurance covers loss of income if the head of the company or other key personnel becomes incapacitated or passes away
- Loss of income covers your business expenses if you can’t operate your business
- Product liability insurance covers damage, illness, or injuries due to faulty products
- Professional liability and malpractice insurance covers loss due to anything that leads to another person’s loss or injury
- Property insurance provides coverage for loss and damages to your commercial business property due to natural disasters
- Records retention policies cover the loss of important data and financial records
- Specialty coverage covers specific business risks, such as landlords, farmers, and commercial operations
- Workers’ compensation protects your employees if they become ill or are injured while working
What Kind of Coverage Do You Need?
Knowing the coverage you need isn’t as simple as whether or not it’s legally required. It depends on how your business operates, what you may encounter, the kinds of customers you serve, etc. If you’re concerned about costs and other factors, the best place to start is with expert insight and quotes from insurance providers in your area.
Business is Better with All Things Insurance
We can get the quotes and give you the insight you need to keep your business strong and protected. To learn more about business insurance, call All Things Insurance at (763) 645-5450.